1999 IMRF Comprehensive Annual Financial Report

Financial SectionEmployers must enroll employees in IMRF if the employees’ positions meet the qualifications for IMRFmembership. There are some exceptions. City hospital employees and elected officials have the option toparticipate. IMRF does not cover individuals in certificated teaching positions covered by the IllinoisTeachers’ Retirement System. Also IMRF does not generally cover individuals performing police or fireprotection duties for employers with local police and fire pension funds. Certain police chiefs may choose toparticipate as Sheriff ’s Law Enforcement Personnel (SLEP) members.3. FundingThe member contribution rates, 4.5 percent for Regular members, 6.5 percent for SLEP members, and7.5 percent for the Elected County Officials Plan (ECO), are set by statute. The statutes require eachparticipating employer to contribute the amount necessary, in addition to member contributions, to financethe retirement coverage of its own employees. Employer contributions for disability benefits, death benefits,and the supplemental retirement benefits are pooled. See the Required Supplementary Information and theActuarial Section for data on the funding status. Costs of administering the plan are financed by investmentincome.4. Benefit ProvisionsBenefits are established by statute and may only be changed by the General Assembly. The benefit provisionsin effect on the member’s date of termination determine a member’s benefit. The following is a summary ofthe IMRF benefit provisions as of December 31, 1999 and 1998. A more extensive description of the plancan be found in the Actuarial Section. The (ECO) plan was created by statute in 1997 and was revised in2000.RefundsMembers who terminate their IMRF participation may withdraw their contributions and forfeit futureretirement benefits.RetirementRegular SLEP Original ECO Revised ECOVesting 8 years 20 years 8 years 8 years in eachelected positionMinimum age for 35+ years of 50 Sheriffs with 20 Sheriffs with 20unreduced benefit service: 55, years of SLEP years of SLEPotherwise 60 service: 50 service: 50otherwise 55 otherwise 55Final rate of earnings Highest consecutive Highest consecutive Annual salary Highest consecutive48 months in the 48 months in the payable on last 48 months in thelast 10 years last 10 years day of ECO service last 10 years foreach elected positionSurvivor benefits Annuity for eligible Annuity for eligible Annuity for eligible Annuity for eligiblespouse spouse spouse and unmarried spouse and unmarriedchildren under 18 children under 18Post-retirement increase 3% of original 3% of original 3% of original 3% of originalamount amount amount amountEarly Retirement At age 55, discount None None Nonebased on age andservice20 Illinois Municipal Retirement Fund